NIO Inc. (NIO) Reports Q4 Loss of RMB2.73/ADS, Offers Guidance

March 18, 2020 7:34 AM EDT

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NIO Inc. (NYSE: NIO) reported Q4 EPS of (RMB2.73), versus (RMB3.20) reported last year. Revenue for the quarter came in at RMB2.84 billion, versus RMB3.45 billion reported last year.

  • Deliveries of vehicles were 8,224 in the fourth quarter of 2019 including 6,824 ES6s and 1,400 ES8s, compared with 4,799 vehicles delivered in the third quarter of 2019.

CEO and CFO Comments

“We delivered, on a combined basis, 8,224 ES8 and ES6 vehicles in the fourth quarter of 2019, representing a 71.4% sequential increase from the prior quarter. Cumulative deliveries of ES8 and ES6 reached 20,565 in 2019, representing an 81.2% increase from 2018,” said William Bin Li, founder, chairman and chief executive officer of NIO. “As a leading premium smart EV brand from China, we are proudly serving over 34,218 NIO users across 296 cities in China as of the end of February 2020. Our ES6 ranked No.1 in electric SUV sales in China for the fifth consecutive month since October 2019.

“We started 2020 in a challenging environment due to the COVID-19 outbreak. While we keep safety and health of our global employees a top priority, our teams strive to resume productions, expand our traffic channels, integrate our online and offline sales efforts and offer best services possible to bring business and operation back to normal. Looking into year 2020, we are confident that we will produce the most competitive electric SUVs in China, including ES6, all-new ES8 and EC6, together with more comprehensive battery and power solutions. We are pleased to see our growing user community becoming an essential part of our brand and business growth. We have covered 59 cities with 22 NIO Houses and 62 NIO Spaces in China, which efficiently support our branding and sales efforts. We are well prepared to proceed through the headwind and become stronger in 2020,” concluded Mr. Li.

“We are pleased with our financial performance in the fourth quarter of 2019, with the top line growing 55.1% from the previous quarter,” added Wei Feng, NIO’s chief financial officer. “We have put great efforts to optimize our organizations and to improve operation efficiency, which resulted in certain one-off expenses in the fourth quarter. However, we believe that these efforts will significantly reduce our operating expenses and improve our cash flows in 2020 and beyond. We will continue to improve operation efficiency in all business fronts to bring positive changes to the performance of our margins in the future.

“Additionally, we made several private placements of convertible notes in February and March 2020, in an aggregate principal amount of US$435 million, which supported our daily operations and business development. On February 25, 2020, we entered into a collaboration framework agreement with the municipal government of Hefei, Anhui Province, who expects to provide resources and funding support for NIO to establish NIO China headquarters in Hefei for our long-term growth. The parties are working on the legally binding definitive documents to be signed.”

Business Outlook

Given the COVID-19 outbreak in China since the end of January 2020, the China auto industry in general and the production and delivery of vehicles of the Company have taken a hit for the first quarter of 2020. Therefore, the Company expects:

  • Deliveries of the vehicles to be between 3,400 and 3,600 vehicles, representing a decrease of approximately 56.2% to 58.7% from the fourth quarter of 2019, and a decrease of approximately 9.8% to 14.8% from the first quarter of 2019.
  • Total revenues to be between RMB1,209.0 million (US$173.7 million) and RMB1,273.2 million (US$182.9 million), representing a decrease of approximately 55.3% to 57.6% from the fourth quarter of 2019, and a decrease of approximately 21.9% to 25.9% from the first quarter of 2019.

For earnings history and earnings-related data on NIO Inc. (NIO) click here.

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